Younger Canadians are embracing entrepreneurship more than older generations, even if it means working on their own projects around their full-time jobs.
Nearly half of gen-Zers are operating a side hustle along with their primary job, while another 32 per cent aspire to start their own business as a second job, according to Royal Bank of Canada’s Small Business Poll .
“Small businesses are the backbone of Canada’s economy, and the next generation of entrepreneurs will help shape its future,” Amy Childs, RBC’s vice-president of small business and partnerships, said in a news release.
“Gen Z is showing that business ownership doesn’t have to follow a traditional path, with success increasingly defined by flexibility, financial stability and independence.”
It’s also the most interested generation in owning their own business, partly because the definition of success is changing, with 31 per cent of young business owners say they prioritize pursuing their passion and turning it into income.
Just 42 per cent of gen-Zers say financial stability is the definition of success, while 27 per cent are prioritizing seeing a business grow and 22 per cent are most focused on growing something meaningful.
Technology has made it easier for many young Canadians to get their idea off the ground, which is partially why nearly half of gen-Zers believe entrepreneurship is more accessible today than it has been for other generations.
“Technology is giving entrepreneurs more ways to turn an idea into a business, but access to digital tools is only one part of building something sustainable,” Childs said. “Entrepreneurs also need sound financial fundamentals, trusted advice and a strong network of support.”
Many young Canadians are optimistic about the future, but the cost of living is largely preventing nearly half of young entrepreneurs from jumping in full time.
Canada’s inflation rate held steady at three per cent in August, largely because of a 22.8 per cent rise in gas prices year over year, according to Statistics Canada , while both grocery and rent prices climbed 2.8 per cent.
Still, many of their side-hustle aspirations come from a place of necessity, as 81 per cent of Canadians say financial uncertainty has motivated them to explore entrepreneurship opportunities.
“Historically, economic uncertainty and high unemployment have informed interest in entrepreneurship,” Childs said. “While it can be challenging to operate a business in this environment, Canadian entrepreneurs have continued to demonstrate resilience by identifying opportunities to adapt.”
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European Union President Ursula von der Leyen invited Canada to become the EU’s first “associate member,” as the collection of nations looks to cut red tape and accelerate growth.
“We see the world with the same eyes, from AI to climate change, from the Arctic to geopolitics, and we have stood together on Ukraine, on defence, on raw materials and supply chains,” von der Leyen said to Prime Minister Mark Carney on Wednesday.
“But above all, dear Mark, Europe and Canada believe in democracy.”
Carney had previously denied Canada was interested in joining the block of 27 countries, instead indicating he was seeking a “unique alliance.”
Details on what the alliance might entail remain sparse, except von der Leyen indicated it would go above and beyond the Comprehensive Economic and Trade Agreement (CETA).
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Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff and Bloomberg.
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